In 1968, a large oil field was discovered on Alaska's North Slope.
The oil companies considered building a pipeline to the port city Valdez.
But this would be very costly.
So they started investigating a shipping route
to reach the American Eastern seaboard.
But this route had never been commercially used.
They've rebuilt an oil tanker to be able to withstand
the harsh conditions of the north.
If successful, the S.S.Manhattan will become
the first commercial cargo ship to ever sail these routes.
In September, it started.
They sailed down the Delaware River and headed north to Baffin Bay.
The waters were calm, conditions were good,
and they reached Thule Airbase in Greenland without any issues.
But the real challenge started here.
Upon entering the Arctic archipelago they found themselves
in one of the harshest conditions on Earth.
It's cold, windy and there aren't any adequate emergency services.
But after several months of slow progress, they've reached Alaska.
This was a historic achievement,
but it also started a dispute between Canada and the United States.
This event brought the legal status of this water to the attention.
Canada considers them to be internal waters, which means that
they can regulate everything shipping, fishing, the environment
and much more. But the United States, amongst many other countries
dispute this and say that they are, in fact international water
similar to the Taiwan Strait and to Turkish straits.
This trade route is now becoming increasingly relevant
as the ice in the Arctic is melting.
The summer of 2007 was the first ice free summer in recorded history.
Canada's new government has put the north higher
on the domestic policy agenda than it has been for half a century.
Canada's prime minister responded by announcing massive investments
in infrastructure and shipping to secure their claim to the high Arctic.
But the United States is determined to protect the freedom of navigation
in the world's oceans.
We're entering a new age of strategic engagement
in the Arctic, complete with new threats to the Arctic and its real estate
and to all of our interests in that region.
We are potentially witnessing a revolution in global trade.
This is Canada's key to global power.
With hindsight
you can't really understate the significance
of the crossing of the S.S.Manhattan
people are to tried to commercially navigate
this passage for hundreds of years.
It goes back all the way to the 1400s.
Spices from East Asia were a valuable commodity in Europe.
They were transported over land through dozens of middlemen
that each got their cut.
This made these places ridiculously expensive.
The alternative was to ship them over water.
The route for South America and Africa were long
and treacherous, with many ships wrecking Midway.
It was clear that whoever finds a shorter northern route
will become unimaginably rich.
Many countries tried and failed.
The best and the most respected captains in the world
were put to the task, but no one managed to find a safe route
until 1903, when Amundsen made his attempt.
He boarded this tiny little ship with five others in September that year.
They left the harbor of Oslo, They Sail to Greenland
and their tactic was to hug the coastline as much as they could.
They spent years in the high Arctic, often stuck in ice.
It turned out to be an incredible advantage that they had such
a small ship and crew and learned from the local Inuit population.
But Arctic survival skills, they spend their time stuck in the ice
and they searched for the North magnetic Pole.
After three long years as seen in this picture, they reached Alaska.
The expedition proved that the Northwest Passage existed,
but it also demonstrated that it wasn't economically viable.
When the Suez and the Panama Canal were constructed,
the urgency to find a Northern Passage was lessened
A ship that travels from London to Tokyo through the Panama
Canal travels about 23,000 kilometers,
going east through the Suez Canal.
It's about 2000 kilometers shorter.
But a trip for the Northwest Passage would only be 1600
kilometers and would save two weeks.
But the unpredictability of the sea ice made it a pipe dream.
The voyage of the S.S.Manhattan brought attention
to the potential of this route, but it didn't prove its viability.
That same ship tried again during the winter and failed,
after which the oil companies decided to just build a pipeline instead.
But a seed was planted. The event started much public debate
and the Canadian government responded
by passing a law to regulate all shipping in zones up
to 100 nautical miles off its Arctic coast.
In other words, they made sure that the entire world
knew that these were their internal waters.
The United States was closely watching,
and they responded with this statement saying,
We cannot accept the assertion of a Canadian claim
that the Arctic waters are internal waters of Canada.
Such acceptance would jeopardize the freedom of navigation
essential to United States naval activities worldwide.
The dispute was formalized.
Canada and the United States have had amicable relations
that withstood the individual agendas of political leaders.
This dispute was a sore spot.
for Canada, It mostly comes down to environmental concerns.
They want to protect the fragile Arctic environment
and the people that live here.
They're mostly inward and they are very relies on these water,
ice, wildlife for their food supply.
The United States is mostly concerned with achieving maximum
freedom of navigation, not just here but around the world.
They fear that Canada's claim might set a precedent
for other countries to do the same.
For example, on the other side of the Arctic,
there's another route “The Northeast Passage”
This hugs the Russian coastline,
and Russia is now rapidly militarizing the region.
Russia is pushing rapidly into the region with aims
to control it before anyone else.
They're upgrading their Arctic military bases,
expanding their naval weapons systems and their fleet. Like Canada,
Russia claims that these are their internal waters.
If the United States supports Canada in their claim,
that could legitimize Russia's claim.
And the U.S. was already aware of this in the 1980s.
The dispute was more or less settled back then
when Canada and the United States signed this agreement
on Arctic cooperation. It's only one page long and it results
after practical issues without solving any of the sovereignty issues.
Basically, they agreed to disagree.
But Canada still steps firmly on its claim,
and they have compelling arguments.
The Inuit population that lives here has a long history
with the ice and the water. This is their ancestral hunting ground.
This is where they created cultures and generations of people.
They are now Canadian citizens, and if they lose their sovereignty
over this water, they would pose an existential threat
to their traditional way of life and culture.
Canada also have legal arguments.
in the United Nations Convention on the Law of the Sea in Article 8,
It sets the conditions for the establishment of a straight baseline,
which has the effect of enclosing its internal waters.
In other words, Canada believes that the geography of the archipelago
places all these water within its territory.
The United States didn't sign this agreement,
but they cite another article that says transit passage
applies to straits, which are used for international navigation.
In simple terms, if the straits are used for international trade,
they should be considered international water
and many vital choke points around the world
are international water following the same logic.
Take, for example, the Turkish Straits, which are just a narrow
waterway for Turkey, but they are international water
as well It's the Danube River, which connects landlocked countries
such as Austria and Hungary to the ocean.
This is also international water.
Many of the world's most important choke points under international law
do not belong to any one specific country.
So why would Canada's?
For the local population, the melting of the sea ice
will undoubtedly change their way of life
if the passage becomes as lucrative as the Panama Canal.
It would add $3 billion in annual revenue to the region.
It would also allow passage of cruise ships.
The tourism sector, which is almost nonexistent today,
could add a thriving new industry to the region
if all of this is correctly managed and we learned from our past,
this could help indigenous communities take a more dominant position
in Canadian society.
If that's the goal,
the first step is to grant locals sovereignty over the territory.
And that discussion is now increasingly heating up.
In 2013, the first commercial bulk
carrier transited the Northwest Passage
on its route from Vancouver to Finland.
It made a nearly 2000 kilometer shortcut.
This allowed for a ship to carry 15,000 tons more weight,
and it saved $80,000 in fuel.
In 2016, The luxury cruise ship Crystal Serenity
charts upwards of $22,000
per person to navigate the Northwest Passage.
Canada is investing hundreds of millions in the construction
of new airports, villages, roads and ports.
They're getting ready to defend their claim
and to maximize their interest.
But let's pause here for a reality check.
How close are we actually to this becoming a regular trade route?
The United States Department of Defense estimates that the passage
will be nearly ice free during the summer of 2040, but there will still be ice.
The winds in the currents are constantly shifting this ice
making the route unpredictable and dangerous.
This uncertainty will lead to higher insurance premiums
and at best, the passage will only be open during the summer months.
It's likely that this will be a niche business for the foreseeable future.
Today, about 20 to 30 ships transit the canal each year.
Most of these are done by icebreakers and small adventure vessels.
Commercial traffic hasn't increased at all.
We're still far from this becoming a regular shipping route.
But one thing is sure, as the Earth is warming,
it will become increasingly valuable and relevant.
One of the disputes
that needs to be solved is in the Beaufort Sea.
Canada and the United States don't have a clear maritime boundary
and the area is of interest to oil companies.
Their border will also influence agreements on which countries responsible
for search and rescue operations, which is currently unclear.
And both countries are underequipped for the task.
Arguably, the most pressing issue for Canada is to cooperate
on environmental issues to protect the fragile Arctic ecosystem
and the people that live along the passage
and who depend on this water to sustain their traditional way of life.
This is already under strain from the accelerated pace of warming.
The relationship between Canada and the United States is long
established and is based on trust and cooperation.
It has historically withstood the changing political agendas
in the electoral cycle. For this dispute to be resolved,
that same trust and cooperation is needed
for Canada to use its key to global power
and to safeguard indigenous rights
and for the United States to get favorable terms.